Can I Get a Tax Credit for My New Furnace?

For many families, there typically seems to be a large list of home improvement projects that they would like to get done or new ideas they’d like to give a shot. While some may not be required, furnace replacement is one task that might be vital to keeping your home comfortable throughout the cooler months in Genoa.

Purchasing a new furnace is a big investment. You’ll definitely notice the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a little daunting at first. The good news is that when you buy a new energy-efficient furnace, you may be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to get the tax credit, you have to purchase a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, look for solutions with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Assured Appliance & Heating & Air, our team can help you identify an option that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to check the furnace you select has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE represents the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit will not be the only savings you’ll observe when you buy a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy bills all year long. And you’ll also have greater confidence in your HVAC system to help your home stay at just the right temperature.

If you come across questions regarding your eligibility for a tax credit, or if there are other local savings you could be eligible for by getting a new high-efficiency furnace, give our experts at Assured Appliance & Heating & Air a call at 847-306-8990. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.